Consumer Math

Personal finance is (a)   behavior and ​ (b)   head knowledge.

• 80%
• 20
• 100%
• 20%
• 10%

Match the following

• Credit

• A fee paid by a borrower to the lender for borrowing money

• Debt

• A debt specified by a "note," which specifies the principal amount, interest rate and date of repayment (example: house mortgage or car note)

• Interest

• An obligation of repayment owed by one party (debtor/borrower) to a second party (creditor/lender)

• Loan

• A person or organization that buys/uses goods or services

• Consumer

• The granting of a loan and the creation of a debt

Match the following

• Economy

• Spending money you do not by using credit cards

• Financial Literacy

• The decisions and actions of an individual or family regarding their money, including spending, saving, budgeting, etc.

• Personal Finance

• The knowledge and skillset necessary to be an informed consumer and manage finances effectively

• Irresponsible

• A system by which goods and service are produced and distributed

• Credit

• Any form of deferred payment

In Dave Ramsey's Consumer Math Course, what are the "beginning steps for establishing and maintaining financial peace" called?

• The 80/20 rule

• The Five Foundations

• Financial Literacy

• Getting Out of Debt

What is the FIRST foundation of establishing and maintaining financial peace?

• Create an

  Emergency Fund

• Get out of debt

• build wealth and give

• pay cash for your car

Label The Five Foundations

steps for establishing and maintaining financial peace (in the proper order)

e

f

g

d

h

Pay cash for COLLEGE

Save a $500 EMERGENCY Fund

Get out of DEBT

Build WEALTH and Give

Pay CASH for your car

Loan money to FAMILY members only

Use CREDIT if you don't have cash to pay

Spend now and SAVE later

Using credit has always been the American way to purchase products.

• True

• False

What never solves problems but only delays one problem while causing others

• paying with cash

• giving to others

• debt

• saving for a rainy day

At least how much money should a high school student have in an emergency fund?

• $100

• $300

• $500

• $5,000

You should keep your emergency funds in the same account with your expense funds.

• True

• False